Piedmont funds development of Ghana lithium project
Lithium producer Piedmont Lithium (Nasdaq: PLL) today announced that it will increase its stake in Atlantic Lithium’s Ewoyaa lithium project as part of a staged investment agreement to earn a 50% equity interest in Atlantic Lithium’s Ghanaian lithium portfolio.
Under the terms of the project agreement with Atlantic Lithium, Piedmont has exercised its option to acquire a 22.5% interest in Ewoyaa, having funded the completion of the project’s definitive feasibility study.
Piedmont said it also plans to provide a further $70 million toward Ewoyaa development capital to acquire an additional 27.5% interest in the project.
Piedmont added it expects to share the remaining project capital costs equally with Atlantic Lithium for a total Piedmont commitment of approximately $128 million toward the total estimated $185 million project capital costs.
Importantly, Piedmont said that support for the Ewoyaa lithium project reflects the company’s confidence in development of Ghana assets, adding that Ewoyaa development furthers its strategy to secure feedstock for the company’s proposed, 30,000-metric-ton-per-year lithium hydroxide conversion facility in Tennessee.
The company noted it is entitled to purchase 50% of lithium concentrate production at Ewoyaa on a market-based pricing mechanism for the life of the mine.
Piedmont President and CEO Keith Phillips said the funding to support Ewoyaa furthers the company’s strategy to supply crucial lithium resources to U.S. electric vehicle and battery manufacturers.
“Our partners at Atlantic Lithium have made tremendous progress with positive project economics recently published in a definitive feasibility study and minerals lease discussions that are progressing with Ghana’s Minerals Commission. We look forward to continuing our work with Atlantic Lithium to support the project toward first production, currently targeted for 2025,” he added.
Piedmont Lithium said that its goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where it holds an economic interest.
The company’s projects include its Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining (ASX: SYA) and in Ghana with Atlantic Lithium (AIM: ALL; ASX: A11).
